A consumer purchases two goods, X and Y. The consumer's starting equilibrium is at R and the ending equilibrium is at T. The indifference curve diagram illustrates the impact of a decrease in the price of good X and the resulting income and substitution effects. What does the diagram imply about the type of good X and the nature of its relationship with good Y?
- Anature of good X: inferior; relationship between X and Y: complements
- Bnature of good X: inferior; relationship between X and Y: substitutes
- Cnature of good X: normal; relationship between X and Y: complements
- Dnature of good X: normal; relationship between X and Y: substitutes